IMPACT Announces Second Quarter Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 27, 2007) - IMPACT Silver Corp. (TSX VENTURE:IPT) ("IMPACT" or "the Company") is pleased to announce its results for the quarter ended June 30, 2007. The Company's consolidated financial statements include the results of the Royal Mines of Zacualpan Project ("Zacualpan") that was purchased on January 16, 2006 and resumed production on January 18, 2006. For the 2007 second quarter, the Company's net revenues were $1,677,000 (2006 - $1,977,000) and net loss of $48,000 (2006 - $103,000). Year to date net revenues were $3,536,000 compared to $3,124,000 for the same period in 2006 with net earnings of $219,000 compared to $75,416 in the first half of 2006. The Company's loss for the quarter included a provision for foreign exchange losses of $172,000 compared to a gain in the comparative period in 2006 of $158,000.

The comparative results for the second quarter of 2006 have been restated in accordance with the recommendations contained in CICA handbook 1506.42. While there has been no change to the net income for the 2006 year, there was a significant timing difference and its impact on net income for the comparative 2006 second quarter earnings as a result of the restatement of the forward sales contract liability incurred during the acquisition of the Zacualpan mine.

In the second quarter of 2007, the Company achieved higher levels of throughput at the Zacualpan mine, averaging 279 tonnes-per-day ("tpd"). The amount of silver produced in the quarter was 13% lower, however production in lead increased 95% and zinc by 74% over the comparable quarter in 2006. The number of total tonnes processed also increased by 75%.

During the first half, mining of medium grade mineral at the Guadalupe Mine continued principally on the 195m Level as well as exploiting the Liptonia Vein on the 140m level. Success in exploration drilling in 2006 led to the commencement of mining in late 2006 from La Gallega (Salvadora) Mine. Mining began on the high grade Salvadora stopes and in the first quarter also commenced on the Lipton Vein and the recently-discovered San David Vein.

With the current prices for base metals the Company plans to continue to mine higher grade lead and zinc mineralization in older production stopes before moving the infrastructure over to the higher silver grade mineralization at San Ramon and El Chivo in the late fall.

The Company is continuing an aggressive exploration and development program as part of the plan to ramp up production at Zacualpan to the current capacity of the mill of 500tpd. A surface drill program of approximately 10,000m is currently underway while underground drilling (with the Company's own rig) continues on a two shift basis.

During the first six months the Company acquired through a Government auction, a 100% interest in the mineral exploration rights to the 200km2 Mamatla mining district, which lies immediately adjacent to the Zacualpan mining district. In Zacatecas the company now has interests in seventeen mineral concessions. The acquisition of these exploration rights adds significantly to the overall growth potential and future prospects of the Company.

The Company holds all its cash and cash equivalents in bank secured investments. It holds no commercial paper.

IMPACT Silver Corp. is a Tier 1 silver-focused mining and exploration company with two producing silver mines at Zacualpan, Mexico; exploration rights to two Mexican mining districts, an advanced-stage silver project at Zacatecas, Mexico; and, other projects in the Dominican Republic. Energold Drilling Corp. (TSX VENTURE:EGD) owns 6.6 million shares of IMPACT.

On behalf of the Directors of IMPACT Silver Corp.

Frederick W. Davidson, President & CEO

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.